Energy security concerns reinforce government focus on renewable energy programs

• Emerging technologies and green fuels will be key to reducing global reliance on gas
• Floating wind and solar have the potential to go mainstream as demand grows for new sources of renewable energy
• Latin America is a green energy market to watch if it can overcome current barriers to growth

LONDON, May 24, 2022 /PRNewswire/ -- Energy security has risen to the top of government priority lists in the wake of geopolitical instability and spiralling gas prices. As a result, governments around the world are looking to accelerate and broaden the scope of their renewables programs to help reduce reliance on imported energy according to the 59^th EY Renewable Energy Country Attractiveness Index (RECAI).

RECAI 59 explores how emerging renewables technologies and green fuels have the potential to substantially reduce the share of gas in power generation, thus creating a favorable investment climate for these sources of supply. In Europe, for example, increasing liquefied natural gas (LNG) import capacity has gained impetus, as has boosting green gas production and the development of other alternative fuels. The report notes that while sourcing gas from elsewhere to reduce reliance on Russian gas cannot happen overnight, significant momentum is now evident.

Arnaud de Giovanni, EY Global Renewables Leader, says:

"Many renewables' technologies that were considered new and high-risk in the recent past are fast showing the potential to become mainstream and are therefore attracting investment interest. With energy prices expected to remain volatile for the foreseeable future, energy leaders have an unprecedented window of opportunity to leverage technological innovation and explore investment in enabling sustainable, renewable growth."

The case for floating technologies                                      

The report also explores the opportunity presented by floating technologies. Offshore wind continues to have great potential for investment, with the cost of electricity generated expected to drop to US$70/MWh or lower by 2030. On top of the 11 floating offshore wind projects already in operation, over a hundred more – with a combined capacity in excess of 26,300MW – are under construction, have achieved financial close or regulatory approval, or are in the early planning stages.